The cryptocurrency market has recently experienced a downward trend, affecting assets such as Bitcoin (BTC), Ethereum (ETH), and Solana (SOL). Below are some of the factors that have contributed to this decline:
Economic uncertainty and restrictive monetary policies: The possibility of interest rate hikes by the Federal Reserve of the United States has generated concern among investors. A more restrictive monetary policy can reduce liquidity in the markets, leading investors to seek less risky assets and moving away from more volatile investments like cryptocurrencies. estrategiasdeinversion.com
Geopolitical tensions and trade measures: The implementation of tariffs by the United States on countries such as Canada, China, and Mexico has increased uncertainty in the financial markets. These trade tensions can negatively impact investor confidence, leading to a decrease in demand for higher-risk assets, including cryptocurrencies. infobae
Security events on cryptocurrency platforms: Incidents such as the hacking of the Bybit exchange on February 21, where nearly $1.5 billion was stolen, have affected investor confidence in the security of cryptocurrency exchange platforms. Such events can lead to massive sell-offs and contribute to market volatility. Bloomberg Línea
Outflows from cryptocurrency investment funds: A significant net outflow from exchange-traded funds (ETFs) related to Bitcoin has been observed. In February, these ETFs experienced a net outflow of approximately $3.3 billion, suggesting a decline in confidence and interest from institutional investors in the cryptocurrency market. Bloomberg Línea
These combined factors have contributed to the recent decline in the cryptocurrency market.
